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Got a bonus or a payout?

Invest it all today, or spread it out?

  • All at once or month by month, side by side
  • In a steady market
  • And one that falls right after you start
Investing it all today leaves you more by
₹59,897
In a steady market, after tax in 2036. Spreading means ₹41,667 a month for 1 yr.
All at once
₹15.17 L
Spread over 12 mo
₹14.57 L

Your money, both ways

In a steady market. Value before tax on selling.

Your inputs

What this means

  • In a steady market, all at once is ahead by ₹59.9K: the money is invested for longer.
    Why?

    While it waits, the money earns the liquid fund's 6.5%, taxed at your slab, instead of equity's 12%.

  • If markets fall 20% right after, spreading is ahead by ₹1.74 L: later instalments buy cheaper.
    Why?

    Both markets grow to the same total over 10 years; only the order of the years differs. Nobody knows in advance which one you'll get.

  • Spreading buys peace of mind, not extra return. It limits how much a bad start can hurt, and costs a little when markets rise.
  • Tax on the gains is about ₹1.33 L all at once and ₹1.22 L spread, already taken off above.
    Why?

    Equity gains held a year or more pay 12.5% above ₹1.25 L a year. The part of the money that waited in the liquid fund pays tax at your slab on its interest instead, and that is built into its 6.5%.

More details

Both markets, after tax in 2036

Steady
  • All at onceMore₹15.17 L
  • Spread out₹14.57 L
Falls 20% first
  • All at once₹15.17 L
  • Spread outMore₹16.91 L

Tax if you sell it all

  • All at once ₹16.5 L before tax₹1.33 L tax · you keep ₹15.17 L
  • Spread over 12 mo ₹15.79 L before tax₹1.22 L tax · you keep ₹14.57 L

Tax on the equity gains if sold in 2036, long-term. Interest from the liquid fund is already taxed at your slab.

How it's calculated

  • All at once: the whole amount goes into the equity fund today.
  • Spread out: the money waits in a liquid fund and moves across in equal parts each month, like a systematic transfer plan (STP). The liquid fund's return is taxed at your slab plus cess.
  • The two markets grow by exactly the same total over your period. The steady one earns your return every year; the other falls 20% in the first year, stays flat in the second, then earns more to catch up. Only the order changes.

At the end, equity gains above ₹1.25 lakh pay 12.5% long-term capital gains tax plus cess. The period is at least a year past the last instalment, so every unit counts as long-term.

Tax if you sell (equity funds). Units held a year or more pay 12.5% on gains above ₹1.25 L a year; units held under a year pay 20%. Both add 4% cess.

Tax = max(0, gain − ₹1.25 L) × 12.5% × 1.04
You keep = value − tax
After-tax return = (you keep ÷ put in)1/years − 1

Tax figures follow Budget 2025 rules, for FY 2025-26 onward.

Common questions

Is lumpsum or SIP better?
If markets rise over time, investing a lump sum sooner usually ends higher, because the money spends longer invested. Spreading it out wins when markets fall soon after you start. Since nobody can tell which will happen, spreading is a way to limit regret, not to earn more.
What is an STP?
A systematic transfer plan: you put the lump sum in a liquid or debt fund and set up an automatic monthly transfer into an equity fund. The waiting money earns a little instead of sitting in a savings account.
How many months should I spread it over?
Six to twelve months is common. Spreading much longer keeps money out of the market for years, which usually costs more than it protects.
Should I increase my SIP instead of investing a bonus?
It depends on whether the extra money repeats. A one-time bonus can go in as a lump sum or be spread over a few months. A pay rise is best matched by stepping up your SIP, so your investing grows with your income.
How is the tax on selling an equity fund worked out?
Gains on units held a year or more (long-term) pay 12.5% on the part above ₹1.25 lakh in a financial year. Gains on units held under a year (short-term) pay 20%. Both add 4% cess. The calculator takes the whole holding as sold in one go and shows what you keep.
Does the same tax apply to debt funds, gold, FDs or property?
No. Debt funds bought after 1 April 2023 and FD interest are taxed at your slab rate, gold and property follow their own holding periods and rates, and this tool applies the equity-fund rule only. Use it as a guide for equity funds, not for every asset.
Can I pay less by selling over several years?
Yes. The ₹1.25 lakh long-term allowance resets every financial year, so selling in parts across years can keep more of the gain tax-free. The figure shown assumes one sale, so it is the higher bill.
Is the after-tax return exact?
It is a close guide. It ignores exit loads, the fund's own expenses beyond the return you enter, and gains you may have booked elsewhere in the same year that use up the allowance. Rates are those of Budget 2024, unchanged for FY 2026-27.